“If we take into account the difficult economic and financial conditions that prevailed in the region and the world as a whole. Such results were not possible to achieve were it not for the flexible and ambitious strategies of the group, which were based on a number of objectives, programs and initiatives that aimed to achieve strong growth in earnings and operations taking advantage of the Group’s depth of geographical presence, thorough knowledge of the Islamic markets and banking products, financial strength and a wide branch network which is the largest amongst Islamic banking institutions,” he added.
“As a strong sign of the improvement of the quality of the Group’s assets, the percentage of non-performing financings to total financings for the Group net of provisions reached less than 1% at the end of year 2013. These ratios are considered excellent if we take into account the prevailing levels of these ratios at banks in the region.”
With regard to the Group’s plans to expand its branch network, the President and Chief Executive said that “The subsidiary units of the Group in Turkey, Algeria, Jordan, Egypt, Pakistan and Sudan continued their expansion by opening new branches in 2013, where new branches reached 54 branches. This has direct positive impact on growing their deposit base and financing portfolios. Total branches of our units in 15 countries reached 479 branches in 2013. We expect that our subsidiary units will add 81 new branches in 2014, especially in Turkey, Pakistan, Tunis, Jordan, Egypt, Algeria, Sudan, Bahrain and South Africa”.
“One of the distinguished marks of 2013 was the success of Al Baraka Turk Participation Bank in concluding the largest Islamic deal in Turkey in the form of a syndicated Shari’a compliant Murabaha financing, raising a total of US$ 430 million. A total of 23 banks from 15 countries participated in the facility. We are indeed delighted at the success of the syndicated Murabaha financing deal of the Bank. This endorses the good reputation and position of the Bank in the Turkish market, on the back of a consistent and successful performance of the Bank over the past many years as well as the distinguished reputation and position of the Group regionally and globally. We will continue during the coming period our policy in diversifying financing resources for our subsidiary units through the issuance of Islamic Sukuk”.
“As embodiment of the prestigious position, which is now occupied by the Group and its units, ABG and five of its subsidiary banking units received the “Best Islamic Financial Institution” Award of 2013, as part of the annual awards that the Global Finance magazine, which is specialized in banking and finance, awards to international banks and financial institutions. Al Baraka Banking Group received the Best Islamic Financial Institution in Middle East / Africa Award, Al Baraka Bank Lebanon received the Best Islamic Financial Institution in Lebanon Award, Jordan Islamic Bank received the Best Islamic Financial Institution in Jordan Award as well as Best Islamic Retail Bank in Jordan Award, Al Baraka Bank Limited received the Best Islamic Financial Institution in South Africa Award, Al Baraka Islamic Bank Bahrain received the Best Islamic Financial Institution in Bahrain Award and Banque Al Baraka D’Algerie received the Best Islamic Financial Institution in Algeria Award. The winning of these awards by ABG and its five subsidiary banking units was announced in a final result statement by the magazine’s Award Committee, which included in its membership, a number of economists and editors of Global Finance, international financial advisors and a number of bank managers and experts in the field of banking.
Al Baraka Banking Group also won “Best Regional Retail Bank – Middle East” Award for 2013 at the prestigious “Annual Islamic Business & Finance Awards” ceremony, which was organized by Islamic Business and Finance Magazine in Dubai”.
“On the sidelines of the 16th Strategy Meeting which was held in the Kingdom of Bahrain during December 2013, Al Baraka Banking Group organized a big celebration to honor the CEOs and general managers of its subsidiary banking units with long service. Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group delivered the honored certificates and souvenirs to the honorees in the presence of a number of members of the Board of Directors of the Group and the President and Chief Executive Officer Adnan Ahmed Yousif, and a number of officials in the Group in addition to the invitees. The honoring comes in the framework of the policies and directives of the Board of Directors of Al Baraka Banking Group to embody the ethical principles, objectives and foundations established by the underlying business model of Group, which is based on the human element of being a cornerstone of its success, and the Group is very keen to entrench this view in all its practices and policies.”
“In terms of the development of the operating environment for the Group and its banking units, we intend during the year 2014 to equip and move to the new headquarters of Al Baraka Bank Egypt at the Ninety Road in fifth district, New Cairo. The total investment cost of the headquarters in addition to the inauguration of a new branch at the headquarters is about EGP 500 million. ABG has great confidence the Egyptian economy and has an ambitious plan to expand its investments in the Egyptian market during the coming period”.
“We also continued during the past year modernizing the institutional, human and technical infrastructure of the Group through developing the regulations, applications and practices of corporate governance, social responsibility, governance, compliance, AML, training, risk management and FATCA regulations in according with latest international standards. The Group adopted an integrated policy to ensure compliance with the FATCA in all its aspects and in accordance with the timetable specified in the law at the Group level and banking units”.
“As a honest embodiment of the ethical and professional responsibility of the Group, we initiated during the year 2013 the role of the Group’s Steering Committee for Social Responsibility, which will ensure the continuity of the social responsibility program of the Group and updating it according to the latest well-known research and strategies in the world, which will furthering the objectives of the Shari’a, as well as the management and supervision of the implementation of the social responsibility program of the Group at the level of the Group as a whole, as one of the leading program at Islamic banking and finance industry level”.
“In accordance with our strategic plans, we have many plans and initiatives that we intend to implement during 2014. These will include launching new innovative products and services in the markets, improving the internal operating environment technically and professionally, enhancing the unified culture related to the Group’s corporate identity, increasing the inter-business among the Group’s units as well as enhancing the standing of ABG in the international markets”.
He praised the tireless efforts of the executive management at Group Head Office, the executive management teams of the banking units of Al Baraka Banking Group and related parties that played an instrumental role in achieving these excellent results for the Group.